Outstanding Comparison To Southwest

[Phoenix]

This is a MUST read article. Feel the Luv.

http://www.justplanesense.com/stories/holl...__PBB111903.htm

 

[ktflyhome]

That was dated Novemeber 19, 2003!!! Dave is gone

 

[Phoenix]

That was dated Novemeber 19, 2003!!! Dave is gone

SouthWest is still here.

And the idea that USAirways will be saved by cost reductions, rather than increased revenue is still alive and well, and will be the death of this company until someone at the top figures out that in order to make money you have to have people buy more of what you are selling.

Mgt seems to find it easier to sell lies to employees rather than tickets to customers. The former business practice is not viable in the long run.

 

[Kev3188]

Still, the points are relevant.

 

[mweiss]

It's an extremely well thought out, well written description of the situation. Pretty much puts in one place all of the stuff I've been trying to say in drips and drabs all over this board.

When I talk about cutting labor costs, it's not about cutting wages (although that is one possible option), but it is about matching wages with productivity. Even if the system itself is inherently inefficient, that doesn't justify paying more than the company is getting in service.

Having said all of that, I'd far prefer to see US gain real efficiencies (not the "cool northern" type) throughout the system. It is the only way the company will be able to survive the next decade.

Incidentally, my only quibble with the article (and it's a little one) is that CASM is the problem. The point made in the article, that one needs to focus on the components, is accurate, but one focuses on those components because one wishes to reduce CASM in order to bring it below RASM in order to become profitable.

 

[mweiss]

...the idea that USAirways will be saved by cost reductions, rather than increased revenue is still alive and well, and will be the death of this company until someone at the top figures out that in order to make money you have to have people buy more of what you are selling.

Buy more of what you're selling? Have you noticed that US Airways is extracting the highest RASM of any airline, by far? Let's not compare US to WN, let's compare US to AA and UA! US is commanding a 25% premium over AA and a 32% premium over UA!

OK, maybe that's not fair, because of the stage-length factor, so let's compensate for that. I'll push US down the stage-length line to match AA, then UA, and let's see what happens there.

That brings US down to a 20% premium over AA, and 26% over UA. Much better. <_< Let's face it, US's product is not 20+% better than its legacy competitors. Comparable, at best, and not when one compares, say, the FC offerings.

No, I'd say US has maximized revenue in a way unmatched by anyone else. You should be proud of that, I guess. But it's ludicrous to pretend that your customers aren't paying enough for your services.

 

[autofixer]

Since there was no disclaimer....Holly's brother is a SWA pilot (correct me if I am wrong). I do not dispute her points, just info only.

 

[Light Years]

Interesting info about the Florida Shuttle. It was saying how Piedmont had dedicated F28s that never left the Florida system. USAir came in and started rotating the planes throughout the Northeast, causing the Shuttle flights to pick up delays from previous flights.

We were discussing a while ago how they did the same thing with PSA. Intra-California flights, once taken over by USAir, were operated by aircraft that inched thier way across the continent picking up delays before they even got there.

Now they have eliminated the dedicated fleet for US Airways Shuttle, instead using mainline configured aircraft that can be swopped throughout the system. I see the logic in eliminating sub-fleets, but just a look at history shows that maybe US needs to make better commitments to markets they want. I know there were many other factors aside from fleet scheduling in the two examples, but its still worth noting.

I'd venture to say that US Airways would be a much stronger airline today if they were still the dominant airline in markets like LAX-SFO and TPA-MCO. Lets hope LGA-BOS, LGA-DCA, and DCA-BOS (some of the few remaining jewels) dont get added to the dubious history book as well.

 

[700UW]

The PI shuttle accounted for 32% of PI's gross revenue and one F28 did leave the state, it flew JAX-LGA on an evening flight.

 

[Doc]

although all is true it some how will never change we have been mismanaged for a long time.
The fact that our management didn't take care of non labor cost in BK is very sad at the least.

 

[7.5victim]

Since there was no disclaimer....Holly's brother is a SWA pilot (correct me if I am wrong). I do not dispute her points, just info only.

Her brother is a retired WN captain. Are you saying that makes her ineligble to comment in anyway? Facts are facts, stats are stats. If you don't like the message, you simply discredit the messenger, rather that discredit what she said?

 

[autofixer]

Her brother is a retired WN captain. Are you saying that makes her ineligble to comment in anyway? Facts are facts, stats are stats. If you don't like the message, you simply discredit the messenger, rather that discredit what she said?

Nope, just pointing out facts. It is possible that there are readers of this post that did not know she had a personal stake in SWA. She LUVs SWA and there is nothing wrong with that. I predict SWA will clean UAIR's clock in PHL, just like they have everywhere else. SWA is already making big plans for PHL. Lucky for him he actually got to retire.

 

[7.5victim]

How does she have a personal stake in WN? She doesn't own any stock (in any airline, and discloses this every week), and aside from a few buddy passes, she recieves no benefit from have a family member who worked at the airline.

 

[700UW]

She use to be very long in WN, she has always hated US, I do not think she can be unbiased.

 

[autofixer]

How does she have a personal stake in WN? She doesn't own any stock (in any airline, and discloses this every week), and aside from a few buddy passes, she recieves no benefit from have a family member who worked at the airline.

My great great grandfather fought for the Union during the War between the States and as such, I feel and attachment to Grand Army of the Republic 140 years later. I would hope you can see if her brother had a years long career at SWA, she would have a personal stake with respect to SWA. Forget about it! We have already wasted too much breath on this subject.